NEOM Green Hydrogen Co. completes $8.4 billion deal for a green hydrogen plant

Saudi Arabia's NEOM Green Hydrogen Co. (NGHC) earlier this week announced that it has achieved financial closure on an $8.4 billion green hydrogen production facility after signing financial documents with 23 local, regional banks, international banks and investment firms.

The green hydrogen plant is currently being constructed in Oxagon, Saudi Arabia and NGHC has already concluded the engineering, procurement, and construction (EPC) agreements with Air Products at a value of $ 6.7 billion. Additionally, the company has secured an exclusive 30-year off-take agreement with Air Products for all the green ammonia produced at the facility.

"This substantial financial backing from the investment community shows the unmatched potential of NGHC's green hydrogen project," said Nadhmi Al-Nasr, Chairman, NEOM Green Hydrogen Co. and CEO of NEOM.

"At scale, this project is the first of its kind internationally, leading the world in the hydrogen revolution. Harnessing the energy of NEOM's abundant natural resources, NGHC's project will pave the way for the large-scale adoption of green hydrogen, while driving Saudi Vision 2030's sustainable development goals."

NGHC is an equal joint venture by ACWA Power, Air Product, and NEOM. Air Product being the primary EPC contractor and system integrator for the facility has already awarded all major subcontracts getting the plant construction underway. The facility will start production by the end of 2026.

"Air Products is proud to be shaping the future of energy with first-mover projects like this one, providing clean hydrogen to the world in a sustainable way. Air Products is the exclusive off-taker and will absorb the full production volume of the green hydrogen produced in the form of green ammonia at the NGHC facility to serve global mobility and industrial markets. Producing and exporting green ammonia supports the decarbonisation of these heavy-duty transportation and industrial sectors and will save the world about five million tonnes of carbon dioxide per year," said Seifi Ghasemi, Chairman, President, and CEO of Air Products.

Earlier in January, Saudi Arabia's Ministry of Industry and Mineral Resources awarded its first industrial operating license to NGHC paving the way for the green hydrogen plant. The hydrogen plant will produce up to 600 tonnes per day of carbon-free hydrogen in the form of green ammonia by integrating up to 4GW of solar and wind energy.

"As an energy transition leader and Saudi national champion, ACWA Power is proud to support and facilitate the successful financial close of this iconic green hydrogen project, marking our continued commitment alongside our partners, to Saudi Arabia's Vision 2030. We have a proven track record of leveraging innovative solutions and advanced technology to deliver clean, sustainable power at the lowest cost," said Mohammad Abunayyan, Chairman of ACWA Power.